of Berkshire Hathaway burqa BRKB The investment holding company’s year-end cash position increased from September levels, according to its fourth-quarter earnings report on Saturday.
what happened: Tesla TSLA CEO Elon Musk commented on investing the cash reserves of Warren Buffett-company to lead. He was responding to trader tweets asking for opinions on Berkshire’s more than $128 billion in cash-purchasable stocks.
“Starting with a T…,” replied the billionaire, apparently referring to his flagship electric vehicle venture, Tesla.
Musk followed it up with a tweet. Charlie Munger When the two lunched together nearly 15 years ago, they had the option of investing in Tesla at a valuation of around $200 million. Munger is Buffett’s trusted lieutenant and vice president as vice chairman of Berkshire.
This isn’t the first time Musk has spoken out about what happened between him and Munger. In reply to a February 2022 tweet, Tesla’s CEO said he had lunch with Munger in 2009 and the latter discussed all the ways Tesla could go wrong. While he agreed with Munger that Tesla could fail, Musk said it was worth a try anyway.
See: What You Need to Know About Tesla Stock
Important reasons: Musk and Munger’s meeting apparently predates Tesla’s IPO on June 29, 2010, according to the timeline Munger mentioned. . tesla bull Cathy Wood Considering only the EV part of Tesla’s story, we expect the stock to hit $500 by 2026 from $196.88 today. The stock could exceed her $1,500, she said, when she also factored in the auto-hailing opportunity.
Meanwhile, Buffett said in his annual letter to shareholders that in the future Berkshire will hold large amounts of cash and U.S. Treasury bills along with various businesses. He also suggested the company would not indulge in activities that could result in uncomfortable cash needs at inconvenient times, such as financial panics and unprecedented insurance losses.
Buffett’s philosophy is to always make value buys and hold onto those investments for the long term. Berkshire itself doesn’t pay dividends, but a significant portion of its invested assets do. So it remains to be seen if Tesla will cut Buffett’s investment.
READ NEXT: Warren Buffett says he’s been managing Berkshire for 58 years, but his decisions are ‘just not better’: Here’s his ‘secret sauce’
Photo: Fortune Live Media and Haddad Media on flickr